FARM GATE AGREEMENT 2021-2022 - NON-EXCLUSIVE AGREEMENT - Bega Cheese
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FARM GATE AGREEMENT 2021-2022 NON-EXCLUSIVE AGREEMENT
Our Brands FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 2
EXECUTIVE SUMMARY
This is a quick reference guide to some of the key points in our agreement. However, it is not
exhaustive, and because you will be bound by the terms and conditions set out in the General
Terms, the Schedules and Simply Perfect manual you should take the time to read each of them
carefully and seek independent legal advice if there are any parts that you do not understand.
Before you sign the Acceptance Form, please check you have read all the agreement, including
the Schedules and Simply Perfect manual.
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 3
Farm Gate Agreement BDD Australia Pty Ltd 2021-2022
• We are committing to collect and purchase a Contracted Volume of milk
1. Term from you for the Term of this agreement. Refer to the Acceptance Form for
the Start Date and End Date of the Term and refer to Schedule 3 for the
Contracted Volume.
2. Minimum Pricing • Schedule 4 sets out the Minimum Price we will pay you for your Contracted
Volume of milk supplied in accordance with this agreement.
3. Calculating your • In addition to the Minimum Price, Schedule 4 also sets out:
Monthly Payment - Additions to the Minimum Price which you may be eligible for
(i.e., Production Incentives); and
- Fees that may apply for our collection and logistics services (i.e., Stop
Charge, Transport Surcharge and Minimum Collection Fees).
• There will not be any increase to these fees for the Term.
• Schedule 2 sets out deductions we may make if your milk does not meet
our Specification.
• Any applicable industry levies will also be deducted from your monthly
payment.
4. Payment Details • Your monthly payment is processed on or about the 15th of each month.
If the 15th is on a weekend or public holiday, we will pay you on the
business day beforehand.
• When you sign the Acceptance Form, please check that you have provided
correct and complete bank account details.
5. Communication • Any notices that we give to you about this agreement will be made in
writing.
• All your notices to us also need to be made in writing.
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 4
• Minimum collection volumes – you are required to supply an absolute
6. Contracted Volume minimum of 500 litres per pick up. Surcharges also apply for collection
volumes less than 1,800 litres on a skip a day basis.
• Delivering an even supply – you must ensure an even supply of milk
throughout each month. From one collection to the next, your pick
up volumes must not vary by more than 10%.
• Short supply – If you supply less than 90 percent of your Contracted Volume
in any month (except due to a Force Majeure), we can recover from you the
cost difference between the price that we would have paid you for the
missing volume and the cost to us of obtaining replacement milk. We will use
all reasonable endeavours to procure suitable replacement milk at the lowest
price.
• Ongoing shortfall – if your supply falls short of 90% of your Contracted
Volume for three consecutive months (except due to a Force Majeure) this
may constitute a material breach of the agreement and if so we may decide
to terminate the agreement.
7. Milk Supply Policy • The Milk Supply Policy in Schedule 1 sets out important information in
relation to your milk supply, including our requirements about the quality,
collection volumes and consistency of your milk and regarding your dairy
operations. The Milk Supply Policy also describes what actions we may take
if milk does not meet those requirements (including where we may reject
milk or suspend collection).
• You’re agreeing to comply at all times with the Milk Supply Policy.
• Before you transfer or sell (or offer to transfer or sell) any of your farm or
8. Transferring your Farm, more than 10% of your herd, you’ll need to give us 30 days written notice.
Assets or Herd
• If you sell your farm, we may require you to novate this agreement to the
incoming farmer so that we can maintain a supply of milk from that farm
for the Term.
9. Adverse Events • This agreement defines Force Majeure as an event that could not be
(“Force Majeure”) foreseen or reasonably avoided by either party and which prevents either
of us from upholding this agreement.
• If you’re affected by a Force Majeure, and you promptly tell us and make
all reasonable efforts to fix the cause of the Force Majeure, you won’t be
penalised for not complying with the agreement during the Force Majeure
period. However, if the effects of the Force Majeure continue for more
than 90 days, we may choose to terminate the agreement if your non-
compliance with the agreement would constitute a material breach in
ordinary circumstances.
• Similarly, if we are affected by a Force Majeure, we will notify you promptly
and make all reasonable efforts to fix the cause of the Force Majeure.
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 5
You agree that you have and will maintain your own insurance for
10. Insurance Public Liability (at least $10 million per occurrence) and Product
Liability (at least $10 million in the aggregate).
11. Disputes & Complaints This agreement provides a procedure for handling disputes or complaints.
Both of us must try to resolve any dispute or complaint first by negotiation
and then,
if required, by mediation.
12. Good Faith In accordance with the Dairy Code, both parties must at all times deal with
each other in good faith in relation to the supply of milk.
By signing the Acceptance Form, you are confirming that you have read
13. Understanding and and understood all of our agreement including the schedules and Simply
acknowledging this Perfect manual. If there is any aspect of this agreement that you don’t
understand, please seek independent legal advice.
Agreement
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 6
Contents GENERAL TERMS 8 13. Changes to your Farm Ownership or Herd 10 1. Definitions 8 14. Failure to Supply 10 2. Elements of this Agreement 8 15. Terminating this Agreement 10 3. Term 8 16. Insurance, Warranties and Liability 11 4. Non Exclusive Supply of Milk 8 17. Trustees 11 5. Minimum Price 8 18. Adverse Events 11 6. Additions to Minimum Price 9 19. Resolving Disputes 11 7. Fees 9 20. General 12 8. Industry Levies 9 Schedule 1 – Milk Supply Policy 13 9. Quality & Testing 9 Schedule 2 – Quality 30 10. Volumes & Delivery 9 Schedule 3 – Contracted Volume 31 11. Payment 10 Schedule 4 – Milk Pricing and Fees 32 12. Milk Supply Policy 10 Acceptance Form 34 or 35 FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 7
(b) If any part or whole of one or more of the provisions of this
GENERAL TERMS agreement are non-compliant with the Dairy Code, then any
part or whole of one or more of those provisions will be severed
1. Definitions from this agreement and the validity, existence, legality and
In this agreement, references to the following terms have the following enforceability of the remaining provisions in this agreement will
meanings: not be affected.
(a) “ACCC” means the Australian Competition and Consumer (c) In accordance with the Dairy Code, both parties must at all times
Commission. deal with each other in good faith in relation to the supply of milk.
(b) “BDD” means BDD Australia Pty Ltd ABN 68 083 019 390 and “we”,
“us” and “our” have corresponding meanings. 3. Term
(c) “Complaint Handling Officer” means the BDD person designated to 3.1 The Start Date and End Date of this agreement are set out in the
manage complaints that arise in connection with this agreement as Acceptance Form. This agreement starts on the Start Date and
notified by BDD to you from time to time. At the Start Date of this continues for the Term unless terminated earlier in accordance with
agreement the relevant person is Bega Cheese Limited’s Executive this agreement.
General Manager of Beverage Operations. 3.2 You may request that this agreement be terminated before the End
(d) “Contracted Volume” means the volume of milk specified in Date on a date between 1 July 2022 and 31 August 2022. We will act
Schedule 3. reasonably in considering whether to accept this request, taking into
account our operational and milk supply requirements.
(e) “Dairy Code” means the Competition and Consumer (Industry
Codes – Dairy) Regulations 2019. 3.3 You acknowledge that you do not have a right to extend the Term of
this agreement, and that if you wish to continue to supply BDD after
(f) “Exceptional Circumstances” means circumstances that are
the end of the Term you must enter into a new agreement with BDD.
temporary and involve an extraordinary event (including an
emergency or change in market conditions) that occurs outside of 3.4 Cooling off period: A 14 day cooling-off period commences from the
Australia and has a highly significant effect on supply, demand or day this agreement is entered into and ends 14 days after. During
costs in the dairy industry, and is not caused by a decision made by this cooling-off period, you may terminate this agreement with
processors. immediate effect by providing us with written notice without
incurring any liability to us.
(g) “Milk Supply Policy” means the document in Schedule 1.
(h) “Notice of the Prospective Step Down” means a written notice of
the step down referred to in clause 5.4, including the Exceptional
4. Non Exclusive Supply of Milk
Circumstances, the reasonable steps (if any) BDD has taken or will 4.1 You agree to supply us with the Contracted Volume of milk, as set
take to prevent or limit the impact of the Exceptional Circumstances, out in Schedule 3, and we agree to purchase and collect that
why the step down is unavoidable, and the period to which the step Contracted Volume of milk, on the terms of this agreement.
down applies. 4.2 You are free to supply any other milk produced at your dairy to any
(i) “Simply Perfect” is the BDD farm quality assurance program set out other person or entity during the Term.
in the manual provided by BDD to you at the same time as this 4.3 We may purchase milk from other people during the Term.
agreement is provided.
(j) “Specification” has the meaning given in Schedule 2. 5. Minimum Price
(k) “Term” means the period commencing on the Start Date and ending 5.1 The Minimum Price that BDD will pay you for the Contracted Volume
on the End Date. of milk supplied in accordance with this agreement is set out in
(l) “you” means the person or entity who executes this agreement and Schedule 4.
“your” has a corresponding meaning. 5.2 In accordance with the Dairy Code, the Minimum Price does not
(m) “your dairy” and “your dairy land and assets” and “your milking include:
herd” mean respectively the dairy(ies), the land and assets, and the (a) any loyalty payments;
milking herd which you have the right to use to operate your
business and which are located at the address(es) on the (b) any fees payable by you under this agreement; or
Acceptance Form (regardless of legal ownership of the land, assets (c) any temporary reduction in the Minimum Price due to Exceptional
and herd). Circumstances. See clause 5.4 for details.
Other terms referred to in this agreement which are not defined in this (We do not make any “loyalty payments” under this agreement, so
clause have the meaning given to them in this agreement or the schedules. this does not apply.)
5.3 Justification for Minimum Price: In accordance with the Dairy Code,
2 Elements of this Agreement Schedule 4 provides a statement of justification for each Minimum
2.1 This agreement is made up of: Price under this agreement.
(a) the Simply Perfect manual; 5.4 Reduction to Minimum Price in Exceptional Circumstances: In
accordance with the Dairy Code, notwithstanding any other terms to
(b) the Milk Supply Policy in Schedule 1; the contrary in this agreement, BDD may unilaterally prospectively
(c) these General Terms; and step down the Minimum Price where:
(d) the other schedules to this agreement. (a) Exceptional Circumstances occur; and
If there are any inconsistencies between these documents, the
terms set out in the lower listed document will prevail.
2.2 Compliance with the Dairy Code:
(a) This agreement is intended to implement the required terms of
the Dairy Code. To the extent there is any inconsistency between
the terms of this agreement and the Dairy Code, then the Dairy
Code prevails.
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 8
(b) BDD has taken or will take all reasonable steps to prevent or limit 9.2 Testing: The Milk Supply Policy sets out the sampling procedures and
the impact of the Exceptional Circumstances, or there are no volume accuracy assurances we use in relation to the milk you
such steps BDD can take; and supply us. The Milk Supply Policy also sets out our obligation to give
(c) because of the Exceptional Circumstances the unilateral you written notice of test results for your milk and give you regular
prospective step down is unavoidable; and statements about your milk.
(d) at least 30 days before the step down occurs, BDD has given you
and the ACCC Notice of the Prospective Step Down; and 10. Volumes and Delivery
(e) provided that the step down does not reduce the Minimum Price 10.1 Volume: You are required to supply us with the Contracted Volume,
for milk supplied after the expected end date of the Exceptional as set out in Schedule 3, for each month of the Term. BDD is not
Circumstances. obliged to purchase any milk in excess of the Contracted Volume
(Surplus Milk) under this agreement. The terms of any agreement
5.5 Termination Right: You will have a right to terminate this agreement between you and BDD to purchase Surplus Milk will need to be
within 21 days after receiving a Notice of the Prospective Step Down. separately agreed.
You can also change your mind and withdraw your termination
during those 21 days only. If you choose to terminate the agreement, 10.2 Minimum collection volume: In accordance with the Milk Supply
in accordance with the Dairy Code, you must continue to supply BDD Policy you are required to supply an absolute minimum of 500 litres
until the date the step down takes effect. Please provide us with as per pick up. Surcharges also apply for collection volumes less than
much notice as possible of your termination, or withdrawal of 1,800 litres per pick up on a skip a day basis. Please refer to section
termination, so that we may make arrangements to cease collecting 21.1 of the Milk Supply Policy and Schedule 4 for more information.
or continue collecting your milk. If you terminate this agreement 10.3 Even supply: You are required to supply an even supply of milk. From
under this clause then, as soon as practicable after termination, you one collection (either on a daily or skip a day basis) to the next, your
must give us written notice of the termination, the reason for the pick up volumes must not vary by more than 10% compared to the
termination and the day the termination takes effect. previous collection.
5.6 No Retrospective Step Downs: BDD will never retrospectively 10.4 Short supply: If you think that you will not be able to supply us with
reduce the Minimum Price under this agreement. the full Contracted Volume in any given month, you must tell us as
soon as possible in writing.
6. Additions to Minimum Price 10.5 Shortfall: If you fail to supply us with at least 90% of the Contracted
6.1 In addition to the Minimum Price, you may also be eligible for Volume in any month (the difference between the volume of milk
additions to the Minimum Price (like Production Incentives) as that you supply to us and your Contracted Volume for that month
described in Schedule 4. being a “shortfall”), except where that failure is due to a Force
6.2 If you are eligible for any additions to the Minimum Price, these will Majeure Event, then you agree to pay us the amount equal to the
be paid as part of your monthly payment in accordance with clause difference between the price that we would have paid you for the
11, unless otherwise described in Schedule 4. shortfall and the cost to us of obtaining milk elsewhere to replace
the shortfall. Our right to claim this cost difference is conditional on
us using all reasonable endeavours to procure suitable replacement
7. Fees milk at the lowest price available.
7.1 BDD or its contractors may perform various services under this
10.6 Continuous shortfall: If you have a shortfall of more than 10% for 2
agreement including collecting and transporting your milk. You
consecutive months we will give you a written warning. If the
agree to pay the applicable fees in Schedule 4 for these services.
shortfall continues in the month following that warning, (i.e., for 3
7.2 There will not be any increase to the fees set out in Schedule 4. consecutive months) this may constitute a material breach of the
These fees are fixed for the Term. agreement giving rise to a right for us to terminate this agreement.
7.3 Please refer to Schedule 4 for any fees that apply to you. 10.7 If we terminate this agreement under clause 10.6 then, as soon as
practicable after termination, we must give you written notice of the
8. Industry Levies termination, the reason for the termination and the day the
8.1 We may deduct from your monthly payment any industry levies that termination takes effect.
we pay on your behalf to the relevant industry body or authority. If 10.8 Collection arrangements: BDD will collect the milk from your dairy
the levy is voluntary, you can advise us in writing to stop collecting as set out in the Milk Supply Policy.
and paying that levy on your behalf. 10.9 Risk in and title to the milk will pass to BDD on collection. Collection
will be deemed to occur when the milk is pumped into BDD’s (or
9. Quality & Testing BDD’s nominee’s) tanker from your vat. For the avoidance of doubt,
9.1 Quality: You agree to supply us with milk that meets the Specification you remain liable for any quality or other issues with your milk
and BDD’s quality requirements as described in Schedule 2. If your including (but not limited to) where your milk contaminates other
milk does not meet the Specification, then we may make quality milk. (For example, see section 18 Un-notified Incidents in the Milk
deductions from your monthly payment in accordance with Schedule Supply Policy).
2. The Milk Supply Policy sets out the actions we may take if milk
does not meet our quality requirements, including circumstances in
which we may reject your milk or suspend collection.
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 9
(c) reduce your milking herd by more than 10%, through sale,
11. Payment transfer, natural attrition or any other method.
11.1 We will pay you a monthly payment which includes the Minimum 13.2 If you sell or transfer your dairy land and/or dairy assets to a third
Price for milk supplied by you in the preceding month, less any party, we may require you to novate this agreement to the transferee
deductions we may make if your milk does not meet our from the date of transfer, in a form which is acceptable to us acting
Specification, plus any additions to the Minimum Price, less any reasonably.
fees, less any industry levies. The final amount will be paid to your
nominated bank account on or about the 15th of each month. If the
15th is on a weekend or a public holiday, we will pay you on the
14. Failure to Supply
preceding business day. 14.1 Cost recovery: If we terminate this agreement for your material
breach, then, without limiting our other rights to claim damages,
11.2 To change your account details, please notify us in writing and we
you agree to pay us an amount equal to the difference between the
will comply within 14 days unless the request is unreasonable.
price that we would have paid you for your Contracted Volume and
11.3 Set-off: We may set off any amount which you owe to us under or in the cost to us of obtaining milk to replace your Contracted Volume
connection with this agreement against any amount we owe to you. for the rest of the Term, provided that we use all reasonable
11.4 GST: endeavours to procure suitable replacement milk at the lowest price
(a) In this clause, expressions defined in the A New Tax System available.
(Goods and Services Tax) Act 1999 (Cwlth) have the meaning 14.2 To be clear, you won’t be required to pay the above cost recovery if
given to them in that Act. you have complied with clause 13 or if you are exiting the dairy
(b) Unless otherwise expressly stated, all prices or other sums industry and no further dairy business is going to be conducted by
payable or consideration to be provided under or in accordance any party using your dairy land or assets (see clause 15.2).
with this agreement are exclusive of GST.
(c) You will not issue tax invoices in respect of the milk supplied to 15. Terminating this Agreement
us by you pursuant to this agreement. 15.1 Either party may terminate this agreement, by written notice of the
(d) Each party acknowledges that it is registered for GST as at the termination to the other party giving the reason for the termination
date of this agreement and will notify the other party if it ceases and the day termination takes effect, if the other party commits a
to be registered. material breach of this agreement and does not remedy that breach
within 30 days of being notified in writing by the other party.
(e) If GST is imposed on any supply made in accordance with this
agreement, the recipient of the taxable supply must pay the The written notice of termination must be given as soon as
supplier an additional amount equal to the amount of GST practicable after the terminating party terminates the agreement.
payable for the taxable supply. Payment of the additional 15.2 If you are exiting the dairy industry, you can terminate this agreement
amount will be made at the same time as payment for the by giving us at least 30 days’ prior written notice (giving the reason for
taxable supply is required to be made under this agreement. the termination and the day termination takes effect) on the
condition that your dairy land and assets will not be used by any
12. Milk Supply Policy other party to produce or supply milk.
12.1 You agree to be bound by and must comply at all times with the Milk 15.3 If you materially breach the Milk Supply Policy and do not remedy
Supply Policy. that breach within 30 days of being notified in writing by BDD we
may terminate this agreement on written notice to you.
12.2 If you don’t comply with the Milk Supply Policy, including but not
limited to the minimum collection requirements, we may stop
collecting and purchasing your milk for up to 7 consecutive days for
each instance of non-compliance. The rest of this agreement will still
apply.
12.3 We may only change the Milk Supply Policy to the extent necessary
to comply with any change in law, and we will provide you with
written notice of such change. We may otherwise only change the
Milk Supply Policy that applies under this agreement with your
agreement.
13 Changes to your Farm Ownership
or Herd
13.1 Subject to clause 13.2, and provided that you have paid any monies
owing to us under this agreement, you may do any of the following
after giving us 30 days prior written notice:
(a) sell or transfer, offer to sell or transfer or allow to be sold or
transferred, any of your dairy land and assets (excluding the
milking herd) to a third party (including to any company or entity
related to you);
(b) make any changes to your ownership structure, or to any lease
agreement, share farming agreement or any other arrangement
affecting your dairy land and/or assets; or
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 1015.4 For the purposes of clause 15.3, breach of the following sections of
the Milk Supply Policy (being a non-exhaustive list) may constitute 18. Adverse Events
a material breach: Section 2. Dairy Accreditation or License; Section 18.1 If an event could not be foreseen or reasonably avoided by a party
14. Use of Quaternary Ammonium Compounds (QACS) or Nonyl- (a “Force Majeure Event”), and prevents that party from complying
Phenol Ethoxylates (NPES); Section 15. Antibiotics or Other with an obligation under this agreement (the “Affected Party”), the
Inhibitory Substances; Section 20.2 Aflatoxin; Section 26.1 Animal Affected Party will:
Welfare Concerns; and Section 26.2.1 Notification of Disease, Death (a) notify the other party of the nature of the event, and of the
or Milk Safety Hazard. obligations it will be unable to perform as a result; and
16. Insurance, Warranties and Liability (b) make all reasonable efforts to remedy the cause of the Force
Majeure Event as quickly as possible.
16.1 Insurance: You must, at your cost, purchase and maintain public
liability insurance for at least $10 million per occurrence and 18.2 Once the other party has been notified, the relevant obligations
product liability insurance for at least $10 million in the aggregate. under this agreement will be suspended until the Force Majeure
You must provide us with a certificate of currency for each policy Event ceases to apply.
upon request. 18.3 If the effects of the Force Majeure Event continue past 90 days, and
16.2 Consequential loss: Unless otherwise specified in this agreement, the effects are such that they would constitute a material breach of
neither of us will be liable for any consequential or indirect losses the agreement by the Affected Party, then the other party can
including but not limited to loss of profit, loss of revenue, loss of choose to terminate the agreement by notifying the Affected Party
goodwill, loss of reputation or opportunity or any other indirect or in writing.
consequential loss.
16.3 Warranties: You warrant to us that: 19. Resolving Disputes
(a) your dairy operations comply with our quality assurance program 19.1 If a party to this agreement has a complaint or there is a dispute in
as well as all relevant laws, regulations and codes of practice relation to a matter arising under or in connection with this
including but not limited to those in relation to occupational agreement, the matter may be dealt with or resolved:
health and safety, employment and workplace relations,
(a) in accordance with the complaint handling procedure below; or,
modern slavery, environmental management, waste
if that fails,
management and animal welfare;
(b) by mediation in accordance with the procedure set out in section
(b) all the milk you supply us will meet or exceed the requirements
48 of the Dairy Code.
of this agreement and comply with relevant Australian laws,
regulations, codes of practice and good industry practice; 19.2 A complaint or dispute must be dealt with in accordance with the
complaint handling procedure below before the parties take action
(c) the milk you supply is not contaminated, spoiled or tainted with
to resolve the complaint by mediation.
other substances;
19.3 Complaint Handling Procedure: If a party to this agreement has a
(d) you own the milk at the time we collect it from you and have the
complaint (Complainant), the Complainant must notify the other
right to supply it to us;
party to the agreement (Respondent) in writing of the following:
(e) you hold and maintain all the necessary licences, approvals and
(a) the nature of the complaint;
permits for supplying your milk to us;
(b) that the Complainant wants the complaint to be dealt with in
(f) you have the power to enter into and carry out your obligations
accordance with the complaint handling procedure provided in
under this agreement and have arranged any authorisations
this agreement; and
necessary for you to execute this agreement; and
(c) the outcome the Complainant wants,
(g) you will not harm the reputation of BDD or our brands.
(the Complaint Notice).
17. Trustees 19.4 If you are the Complainant, you must provide the Complaint
Handling Officer with a copy of the Complaint Notice.
17.1 Unless you have told us that you are the trustee of a trust, you 19.5 Within 5 working days after receiving the Complaint Notice, the
warrant that you are entering into this agreement in your own Respondent must give a written acknowledgement to the
capacity and not on behalf of any other person or as trustee of a Complainant stating:
trust.
(a) that the Complaint Notice has been received; and
17.2 If you have told us you are entering into this agreement as a trustee,
(b) the steps to be taken to deal with the complaint.
you are entering into this agreement on your own behalf and on
behalf of the trust and you warrant to us that you: 19.6 If the complaint is not resolved within 60 days after the
acknowledgement referred to in clause 19.5 either party may take
(a) are either the sole trustee of the trust or if there are multiple
action to have the complaint resolved by mediation.
trustees of the trust, all those trustees are listed as party to this
agreement; 19.7 The Complainant may, at any time, withdraw the complaint by
notice in writing to the Respondent.
(b) have entered this agreement for the trust’s benefit and purpose
and have arranged any required approvals for the trust’s 19.8 Both parties will pay an equal share of the mediation costs and pay
property to be bound to this agreement; their own costs (including legal costs) for attending the mediation.
(c) have the power under the trust deed to enter into this agreement, 19.9 Nothing prevents either party from seeking an urgent injunction in
to fulfil your obligations under this agreement, and to use the relation to this agreement.
assets of the trust to pay any amount required in connection 19.10 You agree to provide us with any information reasonably requested
with this agreement; and by us to assist us in complying with our dispute reporting obligations
(d) have an unrestricted right to be fully indemnified out of the under section 56 of the Dairy Code.
assets of the trust.
17.3 You acknowledge and agree that we are entering into this agreement
on the basis that each of the warranties in clause 17.2 is true and
will remain true throughout the Term.
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 11(b) You consent to us assigning or transferring our rights and
20. General obligations under this agreement to a related body corporate as
20.1 When signing the Acceptance Form, you will provide us with the part of a corporate reorganization or to a third party who
address for receiving any formal correspondence from us. All formal acquires all or part of our business, provided that the third party
communications between us must be in writing. remains bound by the terms of this agreement.
20.2 Please seek independent advice if you do not understand any part of 20.7 Any confidential information of either party must not be disclosed
this agreement. When you sign the Acceptance Form, you confirm by you or us to any other party, unless required by law or the
that you have read and understood all aspects of this agreement. requirements of any stock exchange. This confidentiality obligation
20.3 Unless otherwise specified, any changes to this agreement will need will apply for three years after this agreement is terminated or
to be made in writing and agreed by both of us. expires. The obligation does not apply to confidential information
that is in the public domain (other than as a result of a breach of this
20.4 If there is a change in a Commonwealth, State or Territory law, then
agreement). Either party may disclose confidential information to
we may unilaterally vary this agreement:
their legal and other business advisers.
(a) only to the extent necessary to comply with the changed law;
20.8 This agreement is between us as principal and you as an
and
independent supplier. This agreement is not a legal partnership,
(b) without reducing the Minimum Price. joint venture, agency or employment arrangement.
We will provide you with written notice of the variation, the reason 20.9 This agreement covers our entire terms and conditions and replaces
for the variation and the day the variation takes effect. any prior understandings, negotiations, representations, warranties
20.5 You need our written consent before you can subcontract your or commitments.
obligations under this agreement. If we provide that consent, you 20.10 This agreement may be executed in counterparts and by electronic
acknowledge that you remain liable to us for the acts and omissions signature. Each counterpart will be deemed to be an original and,
of any subcontractor. when taken together, will be deemed to be the same agreement.
20.6 (a) Subject to clause 20.6(b), neither of us may assign or transfer our 20.11 This agreement is subject to the laws and courts of the State or
rights under this agreement without the written consent of the Territory in which your contracted dairy is located.
other party, which consent may only be withheld on reasonable
grounds or subject to reasonable conditions, including entering
into a novation or assignment agreement.
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 12SCHEDULE 1
OUR MILK
SUPPLY
POLICY
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 13Milk Supply Contents
1. Introduction 15
2. Dairy Accreditation or License 16 20. Animal Feedstuffs 25
3. Simply Perfect 16 20.1 Suitability of Feed for Animal Use 25
3.1 BDD Raw Milk Specifications 17 20.2 Aflatoxins 25
4. Farm Gate Agreement 18 20.3 Genetically Modified Organisms (GMO’s) 25
5. Statutory Levies 18 21. Milk Collection 25
21.1 Minimum Volumes and Pick-Up
6. Quality 18
Arrangements 25
6.1 Average Quality Grading System 18
21.2 Minimum Dairy Access Standards 26
6.2 Total Plate Count (TPC) 18
21.3 Rejected Milk and Disposal 26
6.3 Somatic Cell Count (SCC) or 18
21.4 Additional Collections 26
Bulk Milk Cell Count (BMCC)
21.5 Collection volume 26
6.4 Thermoduric Bacteria 18
22. Insurance Cover 27
6.5 Milk Statements 18
23. Milk Storage and Refrigeration 27
7. Colostrum 19
24. (Not used) 27
8. Abnormal Constituents 19
25. Sustainability and Environment 27
9. Temperature 19
25.1 Dairy Effluent Management 27
10. Acidity 19
26. Animal Health and Welfare 27
11. Freezing Point Depression (FPD) 19
26.1 Animal Welfare Concerns 28
12. Shelf Life 19 26.2 Animal Health and Welfare 28
13. Suspension Policy 20 26.2.1 Notification of Disease, 28
13.1 Milk Solids (Fat and Protein %) 20 Death or Milk Safety Hazard
13.2 Somatic Cell count (SCC) 20 26.2.2 Enzootic Bovine Leucosis 28
13.3 Total Plate Count (TPC) 20 (EBL) And Bovine Johnes
Disease (BJD)
14. Use of Quaternary Ammonium 21
Compounds (QACs) and Nonyl-phenol 26.2.3 Other Diseases 28
Ethoxylates (NPEs) 27. (Not used) 29
14.1 Quaternary Ammonium 21 28. Supplier Communications 29
Compounds (QACs)
Glossary 29
14.2 Nonyl-phenol Ethoxylates (NPEs) 21
15. Antibiotics and Other Inhibitory 22
Substances
16. Prior Notification Tests 23
(Antibiotics, Blood in Milk, Sour Milk)
17. Test Kits 23
18. Un-Notified Incidents 24
19. Oestradiol 24
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 141. Introduction
1. Introduction
We have a proud history of producing high quality dairy products. This has been underpinned by
responsible business practice. We can only achieve these outcomes in partnership with our suppliers.
We have a proud history of producing high quality dairy products. This has been underpinned by
This Milk Supply
responsible Policy
business explains
practice. Wethe
canguidelines under
only achieve which
these contracted
outcomes BDD Australia
in partnership Ptysuppliers.
with our Ltd (BDD)
farmers supply raw milk to BDD. The milk sourcing procedures outlined in this Milk Supply Policy aim to
This Milk Supply Policy explains the guidelines under which contracted BDD Australia Pty Ltd (BDD)
ensure best practice food safety processes, animal welfare, OHS and environmental sustainability are
farmers supply raw milk to BDD. The milk sourcing procedures outlined in this Milk Supply Policy aim to
upheld at all times.
ensure best practice food safety processes, animal welfare, OHS and environmental sustainability are
Please
upheldnote
at allthat during the Term this Milk Supply Policy can only change if there is a change in law, and
times.
only to the extent necessary to comply with the changed law, or otherwise with your agreement.
Please note that during the Term this Milk Supply Policy can only change if there is a change in law, and
Ifonly
youto the any
have extent necessary
questions to comply
please contactwith
yourthe changed
local law, Services
BDD Farm or otherwise with your agreement.
Officer.
If you have any questions please contact your local BDD Farm Services Officer.
RESPONSIBILITY STATEMENT:
The responsibility for the initial
production of quality milk rests
with the dairy farmer.
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 152. Dairy Accreditation or License
Suppliers must be accredited or licensed by the relevant State Dairy Authority and meet all conditions specified by the accreditation or license. BDD
cannot accept milk supply from unlicensed or unaccredited suppliers.
It is illegal to sell unpasteurised raw milk for human consumption.
State Dairy Authorities
State Dairy Authority Accreditation Website Contact number
or License
Safe Food Queensland Accreditation www.safefood.qld.gov.au 1800 300 815
NSW Food Authority License www.foodauthority.nsw.gov.au 1300 552 406
Dairy Food Safety Victoria License www.dairysafe.vic.gov.au 03 9810 5900
Tasmanian Dairy Industry Authority License www.tdia.tas.gov.au 03 6478 4100
Dairysafe (Dairy Authority of South Australia) Accreditation www.pir.sa.gov.au/biosecurity/food_s 08 8223 2277
afety/dairy
Western Australian Department of Health Accreditation www.health.wa.gov.au 08 9388 4958
3. Simply Perfect
Simply Perfect is the BDD farm quality assurance program. This program is If you do not have, or you have misplaced, your Simply Perfect manual,
approved by the relevant State Dairy Regulators as an approved Food please contact your local BDD Farm Services Officer immediately.
Safety Program, which satisfies the requirements of the Australia New You must manage non-conformance issues against this program within
Zealand Food Standards Code, Standard 4.2.4 Primary Production and agreed timelines and supply milk in accordance with the BDD Milk Supply
Processing Standard for Dairy products – this is available at Policy and your Farm Gate Agreement.
www.foodstandards.gov.au.
You must keep all records relating to Simply Perfect for a minimum of 6
BDD reviews this program periodically to ensure it continues to meet years after your FGA ends in order to demonstrate compliance with the
relevant regulatory, industry and procurement requirements. program and comply with regulatory obligations.
Simply Perfect forms part of the BDD dairy farm management system and The provision of quality milk must be maintained to all standards outlined
covers mandatory food safety elements, industry endorsed elements, best by the BDD Raw Milk Specifications (set out in section 3.1).
practice farm management and BDD expectations.
All efforts necessary to ensure the standards are met are the responsibility
The program is set out in the Simply Perfect manual which is a document of each supplier, and must be maintained on farm including through your
that needs to be completed and adhered to by each dairy farm business that management of the milking herd, milking activities, milk cooling and
supplies milk to BDD. The dairy farm business supplying BDD is responsible storage processes.
for the implementation of its completed Simply Perfect manual. However,
The supplier is responsible for all milk until the milk enters the BDD
feel free to ask for help from your BDD Farm Services Officer in completing
contracted milk tanker. The supplier is responsible for milk quality and any
your manual.
defect in the milk that was present at the time of collection even if BDD
You will need to keep this manual updated with any changes and have it detects the defect through subsequent analysis and evaluation.
available at all times. Any changes to the program must be initialed and
dated by the responsible person.
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 163.1 BDD Raw Milk Specifications
Critical Performance Criteria
MINIMUM
TARGET CONTROL LIMITS TEST METHOD
TEST FREQUENCY
MICROBIOLOGICAL
AS 1766.2.1 or Petrifilm
Aerobic Plate Count (APC)6.2 Total Plate Count (TPC)
4. Farm Gate Agreement A TPC test will be taken in every 10 day period. If a result over 10,000
The Farm Gate Agreement (including its schedules and this Milk Supply occurs a sample from the following consignment will be tested (a retest)
Policy) (FGA) sets out the terms and conditions for your supply of milk to to confirm the original result. If the retest result is lower than the original,
BDD. the retest result will be the official result for that period. The lower of the
The FGA is a binding legal contract between you and BDD under which you original result and the retest result will be used by BDD as the official result
agree to supply, and BDD agrees to pay for, milk produced at your dairy. for payment purposes. Retesting of samples to assist suppliers in
It is important for you to recognise that compliance with this Policy is a identifying the problem will continue until results are below 10,000. The
10 day average in the period that has the highest result will be excluded
requirement of your FGA. Failure to comply with this Policy, and if this
and the remaining official results will be averaged to determine the result
constitutes a material breach, could ultimately result in the termination of
for the excluded 10 day period.
your FGA.
Each 10 day period’s official TPC result will be applied to the total milk in
BDD recommends that every supplier seeks independent legal advice
that period for quality deduction purposes. This allows for the odd spike in
prior to signing the FGA. TPC and assists those suppliers with management systems in place to
rectify the problem.
5. Statutory Levies In addition, BDD may calculate the “TPC Geometric Mean” which is an 8
Australian Dairy Produce Levy – a levy is payable on dairy produce to provide week geometric mean calculation of TPC.
funding for marketing, research and development carried out via Dairy
Australia. A further component is used to fund the Animal Health Australia 6.3 Somatic Cell Count (SCC) or Bulk Milk Cell Count (BMCC)
(AHA) program. The Levies Revenue Service (LRS) receives the funds and An SCC test will be taken from each consignment of milk and an official
forwards them to Dairy Australia and AHA, in addition to distributing the weighted average calculated for each 10 day period. The period that has
Australian Government’s matching research and development (R&D) the highest weighted average will be replaced with the weighted average
contributions. Levies and export charges are introduced and administered
of the lower combined 10 day period.
by the Australian Government at the request of Industry.
Each 10 day period official SCC (or BMCC) weighted average will be applied
For more information about Dairy Australia and the levy you can
to the total milk in that period for quality deduction purposes. This allows
visit their website at: www.dairyaustralia.com.au or phone 1800 004
for the odd escalation in herd BMCC and assists those suppliers with
377.
management systems in place to rectify the problem.
State Dairy Authorities – various State Dairy Authorities can set levies or
In addition, BDD may calculate the “BMCC Geometric Mean” which is a 13
license or accreditation fees for the issue, transfer and renewal of dairy
week geometric mean calculation of BMCC.
industry licenses or accreditations. The levies or fees are set in consultation
with the respective state’s dairy industry. 6.4 Thermoduric Bacteria
Thermoduric bacteria are organisms that may survive pasteurisation and
6. Quality processing and can affect the end product by causing premature spoilage.
High quality milk is characterised by low SCC, low TPC and low Thermoduric A test for thermoduric bacteria may be conducted every 10 day period.
bacteria. BDD acknowledges that fluctuations in environment can elevate
A target result from thermoduric testing should be under 2,000 cfu/mL for
SCC, TPC and Thermoduric bacteria unexpectedly and has adopted a system
raw milk.
of averaging and retesting to ensure that a result that is representative of
the raw milk supply is used to calculate potential quality deductions. If a result over 2,000 cfu/mL occurs, a sample from your following
consignment of milk will be tested (a retest) to confirm the original result.
The quality deduction structure that applies if your milk does not meet our
Specification is outlined in Schedule 2 of your FGA. If your test results are equal to or exceed 5,000 cfu/mL you will be
contacted directly by your Farm Services Officer to discuss remedial action
All consignment milk tests can be viewed on our supplier website Milkline
to resolve the issue. If results are 5,000 cfu/mL or above, daily testing until
at www.milkline.com.au.
the results are below 5,000 cfu/mL will commence. The test turnaround
Milk test results will be provided in writing to your nominated email time is 3 days.
address or as a text message as soon as practicable after milk has been
tested. 6.5 Milk Statements
At the end of each month, BDD will give each supplier a written statement
6.1 Average Quality Grading System about their milk. The milk statement will contain a summary of the dates,
BDD utilises a 10 day average grading system to calculate milk quality. volume and where applicable quality results for every collection of milk
This will allow for the highest 10 day average result (TPC or SCC) in the during the relevant month.
accounting period to be replaced with the average of the other 10 day
periods in the accounting period. Suppliers will still get a SCC result every If you feel that a TPC, SCC or BMCC result is not
collection and a TPC result at least once every 10 day period. representative, please contact your BDD Farm
Services Officer.
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 187. Colostrum 10. Acidity
Raw milk shall not contain any colostrum or contain high levels of Raw milk must have a titratable acidity less than 0.15%. Milk more than
immunoglobulins. Colostrum is the milk first produced from a cow after this may have experienced refrigeration issues (sour milk).
a calf is born. It is rich in fat, protein, sugars and immunoglobulins. Milk
should be withheld from milk supply for at least the first 8 milkings (4 11. Freezing Point Depression (FPD)
days) after calving.
This test is used to detect added water. Nutritional problems can cause
freezing points to rise, but not generally above -0.5°C. With payments for
8. Abnormal Constituents composition, there is little incentive to add water to milk. We still test for
Raw milk shall be free from abnormal constituents. ‘added water’, however, as it can occur and is a risk to overall milk quality
at the factory. Suppliers will be notified of issues as they arise.
9. Temperature Milk that has had water added to it is considered to be adulterated in an
unacceptable manner. Repeated abnormal results may lead to suspension
Raw milk must be cooled to less than 4°C within 3.5 hours after the
of collection of milk from a supplier’s dairy, and if this constitutes a material
commencement of milking and held below 4°C. This is in line with Simply
breach could ultimately result in termination of that supplier’s FGA.
Perfect and Food Standards Australia New Zealand (FSANZ) Guidelines.
Suspected suppliers may be reported to the relevant Food Authority in
Milk may be accepted and paid for if it is supplied at higher temperatures their state.
provided the collection fits within a common milk cooling curve to ensure
it meets food safety requirements prior to collection.
Milk must be stored in accordance with relevant Commonwealth and
12. Shelf Life
Raw milk should be collected within 48 hours of the first milking.
State legislation. Milk will not be collected from un-refrigerated vessels.
Post-milking cooling curve
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 1913.1 Milk Solids (Fat and Protein %)
13. Suspension Policy Suppliers whose milk falls below the control limits for the criteria set out
In some instances it may be necessary for BDD to suspend the collection of in section 3.1, above, calculated based on a weighted average over a
milk from a supplier for any of the following reasons: 10 day period will be called by their BDD Farm Services Officer advising the
• BDD reasonably suspects a supplier’s milk is unsafe. supplier that their milk quality is below the control limits. A supplier will
then be asked to demonstrate what management changes they are
• BDD (or its contracted milk collection company) identifies potential implementing to rectify the low results.
hazards on a supplier’s farm which could injure BDD’s employees,
If the supplier’s milk continues to not meet the control limits during the
contractors, advisors or agents.
next two 10 day periods following that warning, BDD may suspend
• BDD reasonably suspects a supplier has failed to comply with relevant collection of milk from that supplier until the supplier can demonstrate to
obligations under federal, state or local government regulations. BDD’s reasonable satisfaction that the control limits are being met.
• BDD reasonably suspects a supplier has failed to comply with Simply
Perfect or any alternative quality assurance requirements and sufficient 13.2 Somatic Cell Count (SCC)
corrective action has not been implemented within an agreed timeframe. • The maximum allowable SCC level of milk is 400,000 cells per mL. This is
• A supplier consistently fails to meet the BDD Raw Milk Specifications in line with export requirements and some of the alternate compliance
outlined in this Policy. arrangements in place with some State Dairy Authorities. Suppliers will
receive a written notice after the first two 10 day periods above 400,000
• BDD reasonably suspects a supplier has significant animal health or
SCC (based on a weighted average).
welfare issues concerning its milking herd.
• Suppliers with 3 consecutive 10 day periods with official results above
• A supplier misleads or makes false representations to BDD concerning
400,000 may be subject to BDD’s suspension policy.
the milk supply relationship.
• Suppliers with four 10 day periods (either individual or consecutive) with
• A supplier, or its employees or contractors, engages in inappropriate
official results above 400,000 in a rolling 12 month period may also be
behaviour towards BDD’s employees, contractors, advisors or agents.
subject to BDD’s suspension policy.
Inappropriate behaviour consists of physical and verbal abuse including
threats or offensive language. It is BDD’s policy to provide a safe work • If the BMCC Geometric Mean (described in 6.3) is greater than or equal
place that provides all people associated with our business an to 400,000 cells/mL for 13 consecutive weeks BDD’s suspension policy
environment that is free from inappropriate behaviour. may apply as this equates to the supplier consistently failing to meet the
Each of the circumstances where BDD may suspend collection of milk from BDD Raw Milk Specifications outlined in this Policy.
a supplier’s dairy constitutes a failure to comply with this Policy, and a
breach of the FGA. Repeated breaches, or breaches that are not remedied 13.3 Total Plate Count (TPC)
within a required timeframe may, if it constitutes a material breach, lead • Suppliers will receive written notice after the first two 10 day periods
to the termination of the offending supplier’s FGA. above 50,000 TPC.
• Suppliers with 3 consecutive 10 day periods with official results above
50,000 may be subject to BDD’s suspension policy.
• If the TPC Geometric Mean (described in 6.2) is greater than or equal to
100,000 cfu/mL for 8 consecutive weeks this does not meet export
requirements and BDD’s suspension policy may apply as this equates to
the supplier consistently failing to meet the BDD Raw Milk Specifications
outlined in this Policy.
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 2014.1 Quaternary Ammonium Compounds (QACs)
14. Use Of Quaternary Ammonium QACs are a group of chemicals widely used as biocides and disinfectants in
Compounds (QACS) and the home, industry and in food manufacture. Products containing QACs are
used to clean and sanitise the milking machine and/or vat on some dairy
Nonyl-Phenol Ethoxylates (NPES) farms. Benzalkonium Chloride (BAC) is the specific type of QAC of most
BDD suppliers must not use sanitisers containing Quaternary Ammonium concern, and is present in a number of products registered for use on dairy
Compounds (QAC or QATs). Suppliers must also ensure that the use of teat farms. In some cases, residues have been found in dairy products.
sprays or teat dips are free from the surfactant Nonyl-phenol Ethoxylates BDD will conduct routine testing for the presence of QACs – there should
(NPEs). be no presence of QACs on farm.
The removal of QACs and NPEs are necessary in order to meet the strict 14.2 Nonyl-phenol Ethoxylates (NPEs)
supply chain requirements of BDD’s domestic and export customers.
NPEs are surfactants used in many industrial chemicals, pesticides and
The Dairy Industry has been working closely with chemical companies and
herbicides. However, from the Dairy Industry’s perspective it is their use in
farm equipment retailers to make them aware of these changes, and to
ensure they have suitable alternative products available for the Dairy most iodine-based teat sprays that is of greatest concern. NPEs are used in
Industry to use on farm. It is anticipated that a greater range of products the spray formulations to solubilise iodine. Over the past few years
will be registered for use by the Australian Pesticide and Veterinary concerns have emerged globally about the effects of NPE in the
Medicine Authority. environment and, in particular, toxicity in aquatic environments. But more
importantly, residue testing in Australia has identified that teat sprays
containing NPEs can cause positive residue test results.
Pre-milking teat spray and teat dip are of the most concern to BDD and the
Dairy Industry. As such, BDD will conduct testing for the presence of NPEs.
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 2115. Antibiotics and Other Inhibitory resumption of collection. Positive milk tanker results are reported to the
relevant State Dairy Authority and will require an on farm investigation and
Substances corrective action report. Farms with reoccurring problems may be
Raw milk supplied to BDD must be free from antibiotic substances or any suspended from supply until steps are in place to prove that it will not
other inhibitory substance. reoccur.
These substances, especially antibiotics, can have extreme effects on It is the offending supplier’s responsibility to have the next consignment of
manufacturing processes. Inhibitory substances can include antibiotics, milk tested before the next tanker collection. Where a supplier has tested
pesticides, herbicides, detergents (especially quaternary ammonium positive for antibiotics through routine testing procedures, BDD reserves
compounds), blood and colostrum. BDD does not knowingly process milk the right to have an audit conducted of the supplier’s compliance with its
that has been shown to be positive for inhibitory substances by any valid Simply Perfect manual or the supplier’s alternative quality assurance
test. program to assist with improving the farm management system.
All tanker loads of raw milk are tested using rapid testing methods on BDD participates in the Australian Milk Residue Analysis (AMRA) Survey.
arrival at the factory. Should a positive result be detected on the tanker This is an independent, government-operated, chemical residue monitoring
load, the milk is segregated while further testing is conducted. The vat program for the Australian dairy industry. It is carried out by independent
sample for each supplier that supplied raw milk in the suspect tanker load experts at our sites and other processors’ sites throughout Australia. Both
is then checked for the presence of inhibitory substances and the offending random and targeted milk samples are taken from bulk farm pick- up
supplier will be notified. tankers for testing at Government-contracted laboratories. If a sample is
confirmed as containing a residue at 50% or more of the Maximum Residue
There are also regular random tests on individual supplier samples. The Limit (MRL), then trace-back to farm or factory of origin is initiated and if
consequences for supplying (un-notified) contaminated milk is non-
necessary trace-forward procedures are instigated. A trace-back is also
payment for that milk collection and incurring costs associated with
initiated when a sample is reported as screen (presumptive) positive for
contamination of the tanker (see section 18 on Un-Notified Incidents).
antibiotics or aflatoxin M1.
Several samples may then be taken from the vat for testing prior to
FARM GATE AGREEMENT BDD AUSTRALIA PTY LTD 2021-2022 – NON EXCLUSIVE AGREEMENT 22You can also read
